DNFP 2019

2019 DECLARATION OF NON-FINANCIAL PERFORMANCE OF THE DESCOURS & CABAUD GROUP 27 DUE DILIGENCE: Due diligence is an obligation made to client companies to prevent the social, environmental and governance risks related to their operations, and which may also extend to the activities of their subsidiaries and their trading partners. The aim of the due diligence law is to place respect for human rights at the centre of the concerns of multinational companies. It concerns major companies: French companies with at least 5,000 employees in France and companies with more than 10,000 employees in France having their head office elsewhere in the world. These companies must draw up and publish a due diligence plan to prevent environmental, human rights and bribery risks on their own activities but also those of their subsidiaries, subcontractors and suppliers, in France and internationally. This law has been developed in response to various scandals or disasters such as the collapse of a building in Bangladesh that caused the death of more than a thousand employees, or the affair of forced labour on the World Cup construction sites in Qatar. These events have raised awareness in Europe of the working conditions of subcontractors of major European industrial groups. All companies concerned must elaborate and effectively implement a due diligence plan. This plan includes measures for the identification of risks and the prevention of serious violations of human rights and fundamental freedoms, damage to personal health and safety and the environment resulting from the company's activities. > Risk factors and their consequences: A due diligence fault may be committed due to plan that is either non-existent or incomplete, or even ineffective. When a company that is served notice to meet these obligations fails to do so, the competent court may: • order the company to comply on pain of penalty • characterise its possible civil liability in the event of environmental damage, health hazard or violation of human rights The company officers' criminal liability may also be incurred. Lastly, the company's image could be tarnished in the event of an established disaster in which one or more of its foreign suppliers could be deemed liable.